China had adopted the Soviet model of an economy. Despite development, China faced the economic crisis as industrial production was not growing fast, international trade was minimal. Under these situations, some major policy decisions were taken-
1. China established relations with the US in 1972.
2. China proposed four areas of modernization as agriculture, industry, science, and technology in 1973.
3. Open door policy was introduced to generate higher productivity by the investment of capital and technology from abroad.
4. The privatization of agriculture and industry in 1982 and 1998.
5. China set Special Economic Zones to remove trade barriers.
6. The integration of the Chinese economy and inter-dependencies has enabled China to have considerable influence with its trade partners.
7. The open door policy has stabilized the ASEAN economy.
8. China’s outward looking for investment and aid policies in Latin America and Africa are projecting China as a global player.
